Are Weekend Trades High Reward?

It’s a loaded query, proper?

Not each weekend play is gonna work.

Nonetheless, I’ve been buying and selling this sample for over 25 years and it simply retains occurring.

And while you get it proper, it has the potential to be a strong win.

For me, the hot button is to be meticulous (and ONLY select shares that meet all my standards).

Meaning taking note of extra than simply “the inventory is up on a Friday, so I’m gonna purchase and hope for one of the best.”

And it additionally means not getting grasping, as a result of even winners can fail quick when the market opens once more on Monday.

Let’s check out my current weekend for a greater understanding of what I’m on the lookout for…

Breaking Down My Newest Weekend Winner

On Friday, July 17, Southland Holdings Inc. (SLND) had an enormous contract win by its subsidiary Oscar Renda Contracting of Canada…

Supply: Businesswire

SLND spiked properly on the information and held close to its highs for a lot of the day.

Certainly one of my standards for a weekend play is: The inventory must be closing close to the excessive of the day.

SLND’s common hours excessive was $1.22 per share.

It wasn’t probably the most risky inventory (one other factor I search for), however it constructed assist close to its volume-weighted common value (VWAP) and saved testing the $1.18 space.

However is that sufficient to take the commerce? Perhaps.

Regardless that this 1-year chart seems horrible, you possibly can see two issues that caught my consideration…

Supply: Shares To Commerce

SLND 1-year, each day candle, highest quantity in a yr, 52-week low hit July 10.

1. Friday’s quantity was the best up to now yr by FAR. With a float of solely 14.42 million shares, SLND traded 205 million shares on Friday (14X float rotation). In different phrases, merchants have been paying consideration.

2. It hit a 52-week low on July 10.

That’s counterintuitive, proper?

Why would I be fascinated with a inventory that hit a 52-week low solely per week earlier than it had information a couple of contract?

Even when it WAS spiking, is {that a} high-reward setup?

Give it some thought this fashion…

The Firm Had Additional Incentive To Shut the Deal

I do know I’ve mentioned this at the very least a thousand instances, however I’ll preserve saying it as a result of you have to know…

Penny inventory corporations are horrible.

All of them have to both elevate cash or have some huge catalyst to maintain merchants (or each).

There’s additionally an vital psychological degree at $1 per share. To not point out the opportunity of getting de-listed.

There’s no purpose to suppose SLND was at that time, because it trades on the NYSE American (previously AMEX).

So there’s no $1 per share minimal bid like Nasdaq shares. However even the AMEX can de-list a inventory finally if it trades too low for too lengthy.

Additionally, no firm needs to be a real penny inventory.

Which implies that if it may well get a strong contract win, you recognize it’s going to hype the information going into the weekend.

And that performs completely into my Weekend Dealer technique.

Why?

As a result of despite the fact that lots of merchants have been paying consideration…

Much less meticulous merchants wouldn’t see the information till the weekend.

My Profitable Weekend Commerce

A part of the explanation I took the commerce is as a result of the contract the corporate received is moderately giant.

It’s additionally a multi-year undertaking, which provides it a ton of credibility for related tasks in different communities.

My purpose was for it to interrupt the day highs within the $1.20s and minimize losses if it couldn’t maintain $1 per share.

Supply: Shares To Commerce

SLND, 7/17/26 to 7/20/26, 1-minute candles, Weekend Dealer technique.

As you possibly can see, SLND did handle to carry $1 in after-hours and premarket buying and selling. And it did precisely what I wished it to do on the market open yesterday.

What’s occurring THIS weekend?